Sweat Your Assets
Sweat Your Assets
  • 79
  • 321 794
The Power of Compounding. By Monish Pabrai. Why Everyone is not wealthy?
Another great Master Class on investment by Monish Pabrai.
In this short Finance & Investing 101 lecture, Monish runs the numbers to show the power of compound interest, the real engine of wealth; he shows how everyone could become wealthy when he/she retires.
Content:
1) Compounding. The eighth wonder of the world
2) The Manhattan deal
3) The Millionaire Librarian
4) Why is everyone not wealthy?
5) My daughter
6) Time is Key
_________________________________________________________
Hi! Welcome to the Sweat Your Assets UA-cam channel. In this financial education platform, you can access content to secure your financial GOALS.
___________________________________________________________
IMPORTANT LINKS:
► Here you can sign up for FREE to my monthly newsletter: sweatyourassets.aweb.page/p/86ee239e-f1c9-45de-afca-9dee0dec1e13
► My Podcast: sweatyourassets.biz/sweat-your-assets-podcast/
► Check out my articles at www.sweatyourassets.biz
► Download the PPT used in the UA-cam Video here: sweatyourassets.biz/freebies/
►Other content I published on Monish Pabrai:
- Article: Five Investment Guidelines, by Monish Pabrai. sweatyourassets.biz/investing-guidelines-by-mohnish-pabrai/
- Video: Why You should Buy Index Funds, by Monish Pabrai. ua-cam.com/video/nYF3s34qyso/v-deo.html
- Video: Value Investing learned from Buffett and Munger. ua-cam.com/video/bMMBgLDwrz8/v-deo.html
Keep it Real and ... Sweat Your Assets!
Alessandro Baroni
___________________________________________________________
► Recommended Books:
The Most Important Thing, by Howard Marks. amzn.to/3C4HAK3
Mastering the Market Cycles, by Howard Marks. amzn.to/3C312qA
Check Out my Book Library: sweatyourassets.biz/book-library/
_________________________________________________________
► NOTES:
The original 2016 Lecture has been edited in the interest of time, reach, and educational purposes.
Переглядів: 166

Відео

I won 80% of the matches, with 54% of the points. Roger Federer Lessons For Life / Tennis Lessons
Переглядів 8462 місяці тому
Roger Federer presents his 3 lessons for life at a commencement speech at Dartmouth: - Effortless is a myth - It is just a point - Life is bigger than a court His second lessons - it is just a point - attracted particular interest among business leaders and investors. He makes the case that, even winning almost 80% of the matches, he did it by winning just 54% of the Point (a little bit more th...
The Psychology of Human misjudgement, by Charlie Munger.
Переглядів 61511 місяців тому
In today’s episode number 11, I share a timeless speech of Charlie Munger at his best! The lecture, given at Harvard University in 1995, is known as the "24 (or 25) Cognitive Biases." It covers Munger's mindset on decision-making and analysis. I am sure you will find these notions extremely valuable, not only in Investing, but i any human endeavor. Enjoy the episode. IMPORTANT LINKS: ► The full...
Invest Like a Farmer, by Alessandro Baroni [Audio Podcast Episode 06, Sweat Your Assets]
Переглядів 277Рік тому
It is tempting to overload any investment conversation by quoting statistical models and technical terms. In this fast-paced financial world focusing on trading trends, online platforms, and market movements, it's easy to get lost in the weeds and lose sight of the grounding principles of managing your money essential to long-term success. However, investment decisions should mostly rely on goo...
Diary of a Sustainable Investor, by Tariq Fancy. [Audio Podcast 03 - Sweat Your Assets]
Переглядів 387Рік тому
Welcome to Sweat Your Assets, a podcast boosted with practical wisdom to help you master your personal and financial growth. I’m Alessandro Baroni, and in today’s episode number 3, we read Tariq Fancy's open letter titled: The Secret Diary of a Sustainable Investor, published in August 2021. I learned about Tariq's experience in Sustainable Investing thanks to Professor Damodaran's analysis on ...
The Truth About Investing, by Howard Marks [Audio Podcast 02 - Sweat Your Assets]
Переглядів 12 тис.Рік тому
Welcome to Sweat Your Assets, a podcast boosted with practical wisdom to help you master your personal and financial growth. I’m Alessandro Baroni, and in today’s podcast number 02, we hear Howard Marks’Oaktree co-founder sharing timeless Investment Wisdom on Risk, forecasts, understanding market cycles, and much more. Today's lecture by Howard Marks is by far his most insightful. It covers Mar...
Howard Marks Memo: Risk Revisited Again Tutorial
Переглядів 579Рік тому
In this short tutorial, Howard Marks highlights some key aspects of Risk and Investing, before inviting you to read his Risk Revisited Again Memo here (2015): www.oaktreecapital.com/docs/default-source/memos/2015-06-08-risk-revisited-again.pdf?sfvrsn=7bb70f65_2 Hi! Welcome to the Sweat Your Assets UA-cam channel. In this financial education platform, you can access content to secure your financ...
The Money Code. Become a Millionaire with the Ancient Jewish Code
Переглядів 9 тис.Рік тому
In its author’s words, the Money Code that Jews knew for centuries is found in the books containing history’s most incredible wisdom: Jewish religious texts. Although some popular religious texts such as the New Testament, Quran, Bhagavad Gita, Tao Te Ching or Tibetan Book of the Dead (Bardo Thodol) contain interesting insights and wisdom, it is the Jewish religious texts such as the Old Testam...
Invest Like a Farmer, by Warren Buffett. [Audio Podcast 01 - Sweat Your Assets]
Переглядів 193Рік тому
It is tempting to overload the conversation by quoting statistical models and technical terms when discussing investments. However, investment decisions should mostly rely on sound judgment and basic arithmetics. While some investors prefer rapid trades and short-term gains, others adopt a more patient and disciplined approach. I find solace and clarity in looking into timeless farmer’s wisdom ...
The truth about investing by Howard Marks
Переглядів 67 тис.Рік тому
This is by far the most insightful and detailed lecture of Howard Marks. It is packed with timeless wisdom from its two books (The Most Important Thing, and Mastering the Market Cycles) and Memos (2019). Hi! Welcome to the Sweat Your Assets UA-cam channel. In this financial education platform, you can access content to secure your financial GOALS. IMPORTANT LINKS: ► Here you can sign up for FRE...
Invest Like a Farmer, by Warren Buffett
Переглядів 772Рік тому
Discussing investments, it is tempting to overload the conversation by quoting statistical models and technical terms. However, investment decisions should mostly rely on good judgment and basic arithmetics. While some investors prefer rapid trades and short-term gains, others adopt a more patient and disciplined approach. To better understand the principles of investing, I find solace and clar...
The Surprising Role of Psychology in Your Investments, by Morgan Housel
Переглядів 2,8 тис.Рік тому
Morgan Housel, author of the Investment and Behavioural Finance book the Psychology of Money comments on: 00:00 Warren Buffett 04:45 Ben Graham 06:35 How to Adapt 07:56 On Success 09:26 Rick Guerin 12:14 Behaviour vs Intelligence 16:20 Playing Different games 19:20 Being a long-term Index Investor 20:27 The Concept of Enough 23:46 FOMO 24:22 The Passive Approach 26:00 Fundamentally Weighted Ind...
On financial Bubbles and NOT so Efficient MARKETS, by Robert Shiller
Переглядів 4,1 тис.Рік тому
Professor and Nobel laureate Robert Schiller discusses the Tech Bubble and the Real Estate Bubble and Why markets are NOT so Efficient after all. Hi! Welcome to the UA-cam Channel Sweat Your Assets. In this financial education platform, you can access content to secure your financial GOALS. IMPORTANT LINKS: ► Here you can sign up for FREE to my monthly newsletter: sweatyourassets.aweb.page/p/86...
Is Active Investing Actually BAD for Your Financial Success?
Переглядів 672Рік тому
Do you wonder about the differences between Active Investing and Passive Investing? In this video, several financial experts and authors share their opinion, discussing fees, diversification, marketing traps, and much more. Hi! Welcome to the UA-cam Channel Sweat Your Assets. In this financial education platform, you can access content to secure your financial well-being. IMPORTANT LINKS: ► Her...
The most important thing in Investing, by Howard Marks
Переглядів 21 тис.Рік тому
Howard Marks is the co-founder of Oaktree Capital Management and author of "The Most important thing" and "Mastering the market's cycles". In this Q&A with Milken, he discusses some key concepts from his book: The Most Important thing. 00:00 Failing to understand the lessons of history 01:32 The Nifty Fifty 02:48 Risk and Safety vs Asset Quality 03:58 Black Monday, 1987 05:00 There is no such t...
15 Investment Advices by Howard Marks
Переглядів 36 тис.Рік тому
15 Investment Advices by Howard Marks
VCs are just a big PONZI Scheme, by Steve Blank
Переглядів 2,4 тис.Рік тому
VCs are just a big PONZI Scheme, by Steve Blank
How you can BENEFIT from the bucket approach for retirement income!
Переглядів 1,2 тис.2 роки тому
How you can BENEFIT from the bucket approach for retirement income!
How to Assess Market Risk, by Howard Marks
Переглядів 4,5 тис.2 роки тому
How to Assess Market Risk, by Howard Marks
Are You Risk Averse? By Professor Damodaran
Переглядів 1 тис.2 роки тому
Are You Risk Averse? By Professor Damodaran
WHY Understanding RISK will help your investment decisions, by Professor Damodaran
Переглядів 8102 роки тому
WHY Understanding RISK will help your investment decisions, by Professor Damodaran
WHAT is Risk, by Peter L. Bernstein
Переглядів 2,2 тис.2 роки тому
WHAT is Risk, by Peter L. Bernstein
Why Buffett and Munger are Against DIVERSIFICATION
Переглядів 5332 роки тому
Why Buffett and Munger are Against DIVERSIFICATION
Start a Passion Project. There is not a better time to become creative entrepreneurs
Переглядів 2922 роки тому
Start a Passion Project. There is not a better time to become creative entrepreneurs
How You Can Win the Losers Game, by Charles Ellis
Переглядів 2,5 тис.2 роки тому
How You Can Win the Losers Game, by Charles Ellis
When can you afford buying a Yacht, by Louis CK & Jerry Seinfeld.
Переглядів 1,4 тис.2 роки тому
When can you afford buying a Yacht, by Louis CK & Jerry Seinfeld.
Bill Ackman's Lemonade Stand Case Study in Excel
Переглядів 3,4 тис.2 роки тому
Bill Ackman's Lemonade Stand Case Study in Excel
Smart Money vs Stupid Money. Humble Money vs Arrogant Money. By Aswath Damodaran.
Переглядів 13 тис.2 роки тому
Smart Money vs Stupid Money. Humble Money vs Arrogant Money. By Aswath Damodaran.
Educate yourself to be relevant. YUVAL NOAH HARARI.
Переглядів 6 тис.3 роки тому
Educate yourself to be relevant. YUVAL NOAH HARARI.
How to judge and use a MODEL (the CAPM case). Aswath Damodaran.
Переглядів 1,4 тис.3 роки тому
How to judge and use a MODEL (the CAPM case). Aswath Damodaran.

КОМЕНТАРІ

  • @HermannTheGreat
    @HermannTheGreat 6 днів тому

    Intrinsic valuations aren't stronger than cultural perception's effect on stock price and trends in a growing and optimistic economy. Ex: Costco, Intuit, FICO, Tesla, etc. Did this guy go "all in" during the pandemic?

  • @andrewereynolds5840
    @andrewereynolds5840 21 день тому

    Howard Marks is one of the great investor Maestros.👍

  • @AddilynTuffin
    @AddilynTuffin 22 дні тому

    Hello, I wish to start investing but i dont know where to begin. Any advice on how to invest my 200k cash savings?

    • @AGNESCHANG-u9h
      @AGNESCHANG-u9h 22 дні тому

      Find the undervalued stocks to bring in a 50 percent annual return or consult with an expert to guide you.

    • @carolynrose1816
      @carolynrose1816 22 дні тому

      They're various investment strategies. Follow the S&P 500 by investing in ETFs like VOO, SPY, and SCHD. Dollar-cost averaging into these ETFs will likely outperform most investors.

    • @gregorywhem
      @gregorywhem 22 дні тому

      Acquiring prospective assets with proper mkt direction will provide more returns than doing it all by yourself. Thankfully, I can attest to the success of this approach aided by professional guidance seeing my portfolio of $1.3m grow by 25% this year alone... maybe you should do the same.

    • @Dollrnri
      @Dollrnri 22 дні тому

      @@gregorywhem I find your situation fascinating. Would you be willing to suggest a trusted advisor you've worked with?

    • @gregorywhem
      @gregorywhem 22 дні тому

      Jennifer Leigh Hickman is the advisor I use and i'm just putting this out here because you asked. You can Just search the name. You’d find necessary details to work with to set up an appointment.

  • @ifeanyiejiribe
    @ifeanyiejiribe 23 дні тому

    Thanks for this book summary

  • @SweatYourAssets
    @SweatYourAssets 24 дні тому

    This lecture is about being investment-ready with a firm grasp of compounding. If you like practical presentations where the speaker runs the numbers, you will love this one. Monish takes you through compounding, using the Rule of 72, to secure long-term wealth. To download the PDF presentation, you can subscribe for free here: sweatyourassets.biz/freebies/

  • @brianbirnbaum9760
    @brianbirnbaum9760 26 днів тому

    Howard Marc is a genius, let’s be honest he’s dead wrong that what you buy has nothing to do with your returns. Buying well is precisely what buffet learned to be the most important thing. There is a plethora of data to back this fact up. Additionally, like all things it’s a balance.

    • @SweatYourAssets
      @SweatYourAssets 25 днів тому

      Hi. Thanks for sharing your thoughts and quoting WB. Indeed, Warren Buffett learned from Benjamin Graham the importance of value investing and buying "cheap" stock. However, to scale up, he soon learned from Charlie Munger "to stop buying companies just because they are cheap, but instead, focus on buying wonderful businesses at fair prices". Both approaches are valuable based on your risk profile and investment style. Going back to Howard Marks, it is crucial to remember Howard Marks invests in bonds, not stocks. His business is distressed debt, junk bonds, etc. So, he focuses on "cheap" deals with high returns. It is not necessarily the average bread and butter of a retail investor.

  • @Prasadll0803
    @Prasadll0803 26 днів тому

    It is very difficult to understand economics. All i understand about trading is :- Choose a very few fundamentally growth and consistantly profit making stocks of companies. Wait patiently for the price to fall....Buy. And once the stock price zooms...sell. Repeat...

    • @SweatYourAssets
      @SweatYourAssets 25 днів тому

      Hi. Thanks for sharing these notes. Depending on individual risk profiles, complementary practices could include using (1) DCA (dollar cost averaging) to avoid the risk and stress of solely relying on market timing and (2) a certain level of diversification, not only focusing on growth stocks. Again, different schools of thought are based on each character and life´s path.

  • @MM-tm4sd
    @MM-tm4sd Місяць тому

    Good old Jordan, looks healthy there, now he is really skinny in comparison.

  • @missouri6014
    @missouri6014 Місяць тому

    Why are all the comments so positive when this guy says nothing Of course you have to manage risk Notice he doesn’t even say how

    • @SweatYourAssets
      @SweatYourAssets Місяць тому

      Hi. Feel free to check this short video on Howard Marks's take on Risk: ua-cam.com/video/qLS2Krk1oYg/v-deo.htmlsi=cr5uXQIZ3vB07gyw

    • @missouri6014
      @missouri6014 Місяць тому

      @@SweatYourAssets yes so a lot of words but nothing that we don’t already know. I guess I was expecting some great product or group of products like buffer ETFs or something.

    • @SweatYourAssets
      @SweatYourAssets Місяць тому

      @@missouri6014 By his own choice, Howard Marks presents high-level concepts in his 2 books and MEMOs. While he is super popular and respected, you either like it or not, based on what you are looking for. That makes total sense. For practical details on HOW to manage risk, there are several "easy" methods, but again, it really depends on your risk appetite, timeline, your financial goals, and the investments you plan to use (real Estate, Crypto, Index). I am sure you will find what you are looking for. All the best.

  • @atomicvagrant7686
    @atomicvagrant7686 Місяць тому

    Very good stuff!

  • @carbonized1453
    @carbonized1453 Місяць тому

    NIRMA

  • @jefft9729
    @jefft9729 Місяць тому

    What happens if both the bond and stock markets are down when your cash bucket #1 needs refilling?

    • @SweatYourAssets
      @SweatYourAssets Місяць тому

      Hi. Great point. Harold explains it this way. If you have 1 M USD, you keep in bucket #1 up to two years of cash flow (two years of annual costs), roughly 100,000 USD. If the market goes down, you have at least 2 years of cash available without selling investments from Bucket #2. So, if both bond and stock investments go down, you have 2 years to go through the correction and/or bear market. He comments that if the market goes down, you won´t be happy, but you won´t need to worry too much (for 2 years). Clearly, it is a mitigation measure. Hope it helps.

  • @MaryLee-r2v
    @MaryLee-r2v Місяць тому

    Garcia Dorothy Moore Frank Rodriguez Angela

  • @dartharpy9404
    @dartharpy9404 Місяць тому

    Thankyou. Is this to my ch8ldern every year

  • @paulawatts4655
    @paulawatts4655 Місяць тому

    Wonderful words read by a wonderful man

  • @altruismfirst6489
    @altruismfirst6489 Місяць тому

    Zio-copaths loyal Usury.

  • @parthnchoksi
    @parthnchoksi 2 місяці тому

    very nicely explained

  • @Edi__Flex
    @Edi__Flex 2 місяці тому

    00:04 David Swenson's significant impact on Yale's portfolio growth and financial innovation 02:32 Understanding the criticism of the Swensen approach and the Yale model in portfolio allocation 07:19 Diversification is key for portfolio allocation 09:40 Long-term equity risks reward in the endowment portfolio 14:37 Asset allocation is the most important tool for investors. 17:00 Security selection and market timing can override asset allocation in determining returns for Yale's endowment. 21:13 Asset allocation is the most important factor in investment philosophy. 23:38 Owning equities yielded an impressive multiple of 2,592 times over the period. 27:42 Diversification crucial to avoid significant losses in market crashes 29:44 Stocks are indispensable for investors with long-term goals. 34:08 Market timing decisions led to significant losses for individual investors 36:12 During market downturns, government bonds experience a significant rally. 40:33 Efficient markets make it tough for practitioners to win in a negative sum game 42:43 Differences in top quartile and bottom quartile managers are minimal in the bond market. 46:45 During a crisis, owning U.S. treasuries is the only diversification that matters. 49:04 Long-term benefits of diversified portfolio allocation 53:57 Challenges in funds management 56:26 Institutional investors can beat the market with high-quality active management 1:01:10 Maintaining risk exposure and policy asset allocation 1:03:17 Technology and biotechnology stocks performance in portfolio allocation 1:08:09 Need for better risk measures in funds management 1:11:01 Excess volatility impacts marketable securities vs illiquid assets.

  • @syedmuhammadaftab8732
    @syedmuhammadaftab8732 2 місяці тому

    Wonderful information.

  • @SweatYourAssets
    @SweatYourAssets 2 місяці тому

    Punchline of Louis C.K.: I cannot afford this boat. You can´t buy one yacht unless you can afford ten yachts. There is a kind of formula like that :-)

  • @ayomideolami9597
    @ayomideolami9597 3 місяці тому

    Wow great video keep it up

  • @playerzero2236
    @playerzero2236 3 місяці тому

    Dumb take. Gold like any other asset can be valuated, in this case gold would be assessed as money. So no, it's not an investment but it is a great risk off vehicle for offsetting risk in the market, especially if you pay reasonable prices for it

    • @SweatYourAssets
      @SweatYourAssets 3 місяці тому

      Hi. Thank you for sharing your analysis. It is clear and understandable. Gold is part of my portfolio, and it is clearly performing well right now. I just want to recall Damodaran is a Corporate Finance Expert. Therefore, he likes to see free cashflow and analyse intrinsic value of companies. Trading commodities is not his cup of tea. I like your point of looking to gold as money. Quoting J.P. Morgan, Gold is mine. Anything else is credit: sweatyourassets.biz/what-is-money/

  • @donalddifuntorum4918
    @donalddifuntorum4918 3 місяці тому

    Good job!

  • @playerzero2236
    @playerzero2236 3 місяці тому

    I outperformed spy the last two years and half my portfolio is gold. No it's not an investment, it's money and if you understand the asset it's priceless

  • @alessandrobaroni258
    @alessandrobaroni258 4 місяці тому

    He is not an easy guy, therefore many dislike him despite his wisdom. Personally, a reason more to like him...he is an acquired taste.

  • @maguilla
    @maguilla 4 місяці тому

    Taleb wisdom’s are phenomenal unfortunately not to many will learn from it

  • @greenmanhulk
    @greenmanhulk 4 місяці тому

    Howard Marks is a gem of an investor.

  • @maguilla
    @maguilla 4 місяці тому

    And because of this advice I stock with 3 businesses

  • @patricethomas7703
    @patricethomas7703 4 місяці тому

    Even intelligent people can miss the point.... and get i it so wrong... incredible

  • @liyexiang666
    @liyexiang666 4 місяці тому

    werid, he keep trying to time the market while keep telling people they shouldn't.

    • @SweatYourAssets
      @SweatYourAssets 4 місяці тому

      I feel you. I took some notes from his book titled "Mastering the Market Cycles", where he goes deeper on the subject: sweatyourassets.biz/mastering-market-cycles-by-howard-marks/

  • @PhilipAfuo
    @PhilipAfuo 5 місяців тому

    I shall be a billionaire, philanthropist for the sake of the spreading the gospel of Jesus Christ, Care for the fatherless or orphans and the weak in the society, the last reason is to take care for the widows.

  • @Al_the_great89
    @Al_the_great89 5 місяців тому

    This is one. The most important pieces of content related to startups, this vi's needs more attention,

  • @Ladran_Sancho
    @Ladran_Sancho 5 місяців тому

    So much reverence and his portfolio underperformed the S&P 500 in the last 30 years by almost 2% annually.

    • @SweatYourAssets
      @SweatYourAssets 5 місяців тому

      Hi. That's a good point. I believe that is the case because the University Endowment doesn't benchmark the S&P500. By design, the university endowment builds models with higher asset classes and geographic diversification to (allegedly) reduce volatility and/or Risk. So, it is reasonable not to beat the S&P 500. They just look to other KPIs. Extra data: yaledailynews.com/blog/2023/10/30/yale-endowment-performance-on-par-with-peers-in-slow-year-for-university-investment-returns/

  • @BNE02
    @BNE02 5 місяців тому

    At last...a version without unnecessary and distracting background music. Just Michael Caine reading this poem. A pleasure.

  • @אמירמלמד-ו2כ
    @אמירמלמד-ו2כ 6 місяців тому

    ua-cam.com/video/f7V339rOLLc/v-deo.htmlsi=PGzMuzmYAlVZm3Ob In israel

  • @kevinjacob7883
    @kevinjacob7883 6 місяців тому

    Is it not 50% for the lender by end of 5 years. ? Lender - 10% each year ==> after 5 years --> 250$ + 125$ --> 50% Investor - after 5 years --> 1000$ ---> 100%

  • @tamildeville2133
    @tamildeville2133 6 місяців тому

    💖

  • @kwamelawson5142
    @kwamelawson5142 7 місяців тому

    With great wisdom comes great wealth instead of going after money persue wealth 😅😅😅

  • @kwamelawson5142
    @kwamelawson5142 7 місяців тому

    Money code 😊

  • @Pieter2360
    @Pieter2360 7 місяців тому

    Wnderfull. And this aged very well ❤

  • @tset500
    @tset500 7 місяців тому

    And now 0% reserve requirement for banks

  • @the_colorado_spaceman
    @the_colorado_spaceman 7 місяців тому

    It’s weird how banks are closing today!

  • @randomlee3590
    @randomlee3590 7 місяців тому

    Insightful 🎉🎉

  • @caseyvines9417
    @caseyvines9417 8 місяців тому

    Beautiful

  • @hzboi
    @hzboi 8 місяців тому

    Is there a way to download these slides?

    • @SweatYourAssets
      @SweatYourAssets 8 місяців тому

      Download the PPT used in the UA-cam Video here: sweatyourassets.biz/freebies/

  • @Albert87nl
    @Albert87nl 8 місяців тому

    ill bet once this was posted the sole reason that book is super hard to get lol

  • @infiniti28160
    @infiniti28160 9 місяців тому

    As for bitcoin, what stops the money printers from buying all the bitcoin and controlling from the inside.

  • @infiniti28160
    @infiniti28160 9 місяців тому

    Why does nott the government itself print its own money? If Russia can do it then why not the western world?

  • @aradhaselirad3903
    @aradhaselirad3903 9 місяців тому

    He had an incredible voice!

  • @rdecarolis1
    @rdecarolis1 9 місяців тому

    Howard is admitting without directly saying it, that timing the purchase of securities is the best way to make a lot of money, and you can't do that unless you have money on the sideline. This mentality is the exact opposite of "advisors" who state that you must be fully invested at all times. What's best for advisors isn't the best advice for investors. The same goes for being diversified. It's ok to be diversified if you don't know what you're doing.